Range Resources (RRC) jumped 17.66 percent Monday after EQT (EQT) announced an all-stock acquisition of the natural gas producer, valuing the merged entity at more than $50 billion.
The deal creates a scaled natural gas producer with 9 billion cubic feet equivalent per day of net production, three decades of proven inventory, 3 million net acres of gas-rich land and 3,700 miles of midstream infrastructure. EQT projects $325 million in annual cost savings from integration, reducing the company's free cash flow breakeven price to below $2 per million British thermal units—a critical metric for weathering price cycles.
The combined company is guiding for approximately $20 billion in total free cash flow over the next five years. That cash generation depends on execution of two specific catalysts: capturing accelerating LNG export demand in Asia and Europe, and supplying natural gas to U.S. power plants serving the expanding artificial intelligence data center buildout.
Range Resources shareholders will receive 0.987 EQT shares for each Range share held. EQT's current leadership will run the merged company. Range CEO Dennis Degner joins EQT's board.
The transaction closes in the first quarter of 2027, subject to shareholder and regulatory approval.
EQT CEO Toby Rice said the deal "brings together two of the highest-quality, longest-duration asset bases in North America and creates a company uniquely positioned for the next era of natural gas."
